**
>>> SUPPORT FOR THIS PROGRAM IS
PROVIDED BY THE FOUNDATION FOR
EXCELLENCE IN LOUISIANA PUBLIC
BROADCASTING.
AND FROM VIEWERS LIKE YOU.
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>> HELLO AND WELCOME TO
"LOUISIANA PUBLIC SQUARE," I'M
BETH COURTNEY, PRESIDENT OF
LOUISIANA PUBLIC BROADCASTING.
>> AND I'M KIRBY GOIDEL,
PRESIDENT 6 POLITICAL SCIENCE
AND MASS COMMUNICATION AT LSU.
A BIG PUSH BY GOVERNOR BOBBY
JINDAL SINCE ENTERING OFFICE HAS
BEEN THE PRIVATIZATION OF STATE
GOVERNMENT OPERATIONS WHICH HE
SAYS WILL SAVE MONEY OF THE
ACCOMPLISH THIS, THE STATE HAS
CONTRACTED WITH OUTSIDE
PROVIDERS FOR PROFESSIONAL,
PERSONAL AND CONSULTING
SERVICES.
>> CURRENTLY LOSE HAS NEARLY
13,000 ACTIVE CONTRACTS, THE
MAJORITY FOR $50,000 OR MORE.
A PROPOSED BILL WOULD REDUCE
SPENDING ON STATE CONTRACTS BY
10%.
THE JINDAL ADMINISTRATION SAYS
THE AMOUNT THAT LOUISIANA
CONTRACTS FOR IS ALREADY BEING
REDUCED AND SOME OF THE BIGGEST
CONTRACTS ARE FOR ESSENTIAL
SERVICES SUCH AS THE
ADMINISTRATION OF HEALTH
INSURANCE OR DRUG PRESCRIPTION
PROGRAMS.
HOW NECESSARY ARE THE MAJORITY
OF STATE CONTRACTS?
ARE THEY COST-EFFECTIVE?
AND ARE THERE CERTAIN GOVERNMENT
SERVICES THAT SHOULD NOT BE
PRIVATIZED?
TONIGHT "LOUISIANA PUBLIC
SQUARE" LOOKS FOR ANSWERS ON
"STATE CONTRACTS 101".
>> SOON AFTER THE NUTRITIONAL
SERVICE FOR THE SOUTHEAST
LOUISIANA HOSPITAL IN JACKSON
WERE PRIVATIZED, STATE
REPRESENTATIVE KENNETH HAVARD
BEGAN RECEIVING COMPLAINTS FROM
PATIENTS' FAMILY MEMBERS.
THE CONCERNS WERE ABOUT THE
PENNSYLVANIA COMPANY PROVIDING
MEALS FOR THE HOSPITAL AND A
NURSING HOME, BOTH IN HAVARD'S
DISTRICT.
>> THEY RAN OUT OF FOOD 93
TIMES.
THEY BOUGHT HAMBURGERS FROM
McDONALD'S.
THESE ARE ALL PEOPLE, GERIATRIC
PATIENTS TAKING MEDICINE AND
IT'S VERY, VERY IMPORTANT FOR
THEM TO HAVE THE RIGHT NUTRITION
TO THEIR MEDICINES WORK.
>> THE COMPANY HAS NOT MET
PERFORMANCE INDICATORS AND IS
STILL BEING PAID.
THEY NOW RECEIVE OVERSIGHT FROM
STATE EMPLOYEES.
>> NOW WE'VE GOT A BUNCH OF THE
STATE WORKERS COMING IN EARLY IN
THE MORNING TO WATCH OVER AND
REVIEW WHAT A PRIVATE CONTRACTOR
WAS SUPPOSED TO DO TO BEGIN
WITH.
>> THIS SESSION HAVARD IS
RESPONSIVING HOUSE BILL 127 THE
LAW WOULD REQUIRE A
COMPREHENSIVE REVIEW BY THE
LEGISLATURE AND NAL ASSESS BY
THE LEGISLATIVE AUDITOR'S OFFICE
BEFORE THE TROUBLE OF STATE
CONTRACTS WORTH MORE THAN $5
MILLION.
HAVARD HAS CONCERNED WITH
CONTRACTS SUCH AS THE
PRIVATIZATION OF THE STATE'S
CHARITY HOSPITAL, WHICH WAS
APPROVED WITHOUT PARTICIPATION.
>> I WAS ELECTED AND 104 OTHER
ONES IN THE HOUSE WAS ELECTED TO
BE THE PEOPLE'S LOBBYISTS.
WE'RE RESPONSIBLE FOR THEIR
MONEY AT THE END OF THE DAY AND
WE SHOULD HAVE A STAY IN THESE
CONTRACTS.
>> DON GREGORY IS STATE DIRECTOR
AND ANALYST FOR THE PUBLIC
AFFAIRS RESEARCH COUNCIL OR PAR.
HE COAUTHORED A REPORT FOR PAR
ABOUT THE PRIVATIZATION OF THE
LOUISIANA CHARITY HOSPITAL
SYSTEM.
AMONG THE ISSUES WAS THE
SUSTAINABILITY OF THE FUNDING
STREAM.
>> WE TRIED TO FOLLOW THE MONEY
THEY WERE INVESTING IN THE NEW
PARTNERSHIP HOSPITALS.
ABOUT HALF OF THAT MONEY IS
FEDERAL MONEY THAT COMES FROM
UNCOMPENSATED CARE FOR PEOPLE
THAT ARE UNINSURED.
WE ARE CONCERNED BECAUSE THE JIM
OBERSTAR CALLS FOR FOR AN $18
BILLION REDUCTION IN THAT SOURCE
OF FUNDING BETWEEN NOW AND 2020.
>> SOME OF THE CONTRACTS DO NOT
HAVE SPENDING CAPS ON THEM WHICH
WILL LEAVE THE TAXPAYER ON THE
HOOK FOR OVERRUNS.
>> THEY BUDGETED FOR THOSE
HOSPITALS FOR THE CURRENT FISCAL
YEAR.
IF THEY EXCEED IN THAT COSTS THE
STATE IS OBLIGATED TO MAKE UP
THOSE COSTS.
>> HAVARD SAYS WHILE IT COSTS
$100 MILLION TO RUN THE EARL K.
LONG HOSPITAL IN BATON ROUGE IN
12, COSTS HAVE CONTINUES TO
CLIMB SINCE THE CONTRACT WITH
THE HOSPITAL WERE SIGNED.
>> THE YEAR BEFORE THAT IT WAS
$138 MILLION, THIS YEAR
PROJECTED AT $169 MILLION.
THAT'S A 68.MINE% INCREASE.
>> THE FISCAL OFFICE SAID THERE
COULD BE A SHORTFALL RELATED TO
HOSPITAL AND RETIREE BENEFIT
COSTS FOR WHICH THE STATE WILL
BE RESPONSIBLE.
EARLIER THIS MONTH THE CENTERS
FOR MEDICARE AND MEDICAID
SERVICES TOLD STATE OFFICIALS IT
WOULD NOT PAY $307 MILLION
WWW.FIRST CONSULTING.
>> THE REMAINDER, WE'RE NOT
NEGOTIATING HARD ENOUGH TO GET A
GOOD ENOUGH DEAL FOR TAXPAYERS.
>> FOR LOUISIANA TREASURER JOHN
KENNEDY, IT'S NOT THE
PRIVATIZATION CONTRACTS BUT THE
CONSULTING ONES THAT GIVE HIM
PAUSE.
>> WE SHOULDN'T USE EITHER THE
PUBLIC OR THE PRIVATE SECT TORE
HIRE SOMEBODY FOR $70,000 A YEAR
TO GO AROUND RAPIDS PARISH TO
URGE OUR HISPANIC NEIGHBORS TO
WEAR THEIR SEAT BELTS.
THEY SHOULDN'T BE SPONSORING
GOLDEN GLOVE BOXING TOURNAMENTS.
THEY SAY IT'S FOR OBESITY.
WE'VE ALREADY GOT PROGRAMS FOR
OBESITY.
IT'S CALLED P.E.
>> ACCORDING TO THE DIVISION OF
ADMINISTRATION, LOUISIANA IS
CURRENTLY INVOLVED IN NEARLY
13,000 ACTIVE CONTRACTS WITH
MORE THAN HALF OF THEM FOR
$50,000 OR GREATER.
HOUSE BILL 142 SPONSORED THIS
SESSION BY REPRESENTATIVE
DERICHARD WOULD REDUCE SPENDING
BY 15% AND DEVOTE THE SAVINGS TO
HIGHER ED.
>> WE SPEND ABOUT $6 BILLION A
YEAR IN STATE CONSULTING
CONTRACTS.
THIS YEAR 10%, IF IT PASSES IT'S
GOING TO SAY YOU CUT 10% OF LAST
YEAR'S DOLLAR FIGURE, ROUGHLY $6
BILLION.
>> ADMINISTRATION COMMISSIONER
CHRISTY NICHOLS TESTIFIED.
>> THIS APPROACH DOES NOT LEND
ITSELF TO GOOD GOVERNMENT.
THIS IS AN ARBITRARY APPROACH TO
PUTTING IN A PLUG YOU DON'T KNOW
WILL HAVE ANY VALUE AT ALL.
>> KEN NAQUIN SAYS THE BILL
WOULDN'T BE NEEDED IF GOVERNOR
JINDAL RANDOM STATE GOVERNMENT
LIKE A BUSINESS.
>> JUST IMAGINE WHAT WOULD
HAPPEN IF THE GOVERNOR WROTE ALL
13,000 -- I THINK THE FIGURE'S
HIGHER -- OF OUR CONSULTANTS AND
SAID, TIMES ARE TOUGH IN
LOUISIANA, WE NEED MONEY FOR
HIGHER EDUCATION.
WE WANT YOU TO REDUCE YOUR
CONTRACT THIS YEAR BY 10%, 5%,
3%, OTHERWISE WE'RE GOING BID IT
OUT AGAIN.
THEY ARE NOT GOING TO SAY NO.
THEY ARE GOING TO MOAN AND GROWN
AND DO IT.
IN THIS ECONOMY?
THEY ARE GOING WALK AWAY FROM A
CONSULTING CONTRACT BECAUSE
WE'VE ASKED FOR A MODEST
DISCOUNT?
>> WHILE HE HAS CONCERNS WITH
PARTS OF BOTH HAVARD'S AND
RICHARD'S LEGISLATION, ROBERT
TRAVIS SCOTT SUPPORTS ANY
EFFORTS THAT MAKE THE PROCESS
MORE TRANSPARENT FOR ITS
CITIZENS.
>> STATE CONTRACTING IS A BIG
PART OF PUBLIC SPENDING AND A
BIG PART OF TAXPAYER SPENDING.
LET'S KNOW WHAT WE'RE DOING AND
WHY.
>> JOINING ME IN OUR STUDIO
AUTOPSIES TO EXPLORE THE STATE
CONTRACTING PROCESS ARE
RESIDENTS FROM THE GREATER BATON
ROUGE AREA, INCLUDING RETIRED
STATE EMPLOYEES, MEMBERS OF THE
LEGISLATIVE YOUTH ADVISORY
COUNCIL AND BUSINESS OWNERS.
WELCOME, EVERYONE.
LSU'S PUBLIC POLICY RESEARCH LAB
SURVEYED OVER 150 CITIZENS ON
TONIGHT'S TOPIC.
HERE'S A LOOK AT SOME OF THE
RESPONSES.
WHEN ASKED ABOUT WHO THEY THINK
PROVIDES SERVICES IN A MORE
TIMELY AND HIGH QUALITY MANNER,
48% OF RESPONDENTS SAID PRIVATE
EMPLOYEES HIRED BY PAID
CONTRACTORS.
30% SAID STATE GOVERNMENT
EMPLOYEES.
AND 22% WERE UNSURE.
WHEN ASKED IF THE CHARITY
HOSPITALS IN LOUISIANA SHOULD BE
RUN BY THE STATE OR BY PRIVATE
COMPANIES, RESIDENTS WERE
DIVIDED.
44% SURVEYED FAVORED THE STATE
RUNNING THEM, 41% WOULD PREFER
PRIVATE COMPANIES RUNNING THEM,
AND 15% EITHER REFUSED OR WERE
UNSURE.
ASKED THEIR OPINION ON CURRENT
LEGISLATION THAT WOULD REDUCE
PRIVATE CONTRACTS BY 10%, 46% OF
RESPONDENTS SUPPORT THE
LEGISLATION, 31% OPPOSE IT, AND
23% WERE UNSURE.
AND WHEN ASKED IF THE STATE
SAVES MONEY, SPEND MORE MONEY OR
THE COSTS REMAIN ABOUT THE SAME
WHEN THE STATE CONTRACTS OUT
STATE SERVICES TO PRIVATE
COMPANIES, 40% OF THOSE SURVEYED
IT THIS STATE SPENDS MORE MONEY,
WHILE EQUAL PERCENTAGES, 24%,
SAY EITHER THE STATE SAVES MONEY
OR THAT IT COSTS ABOUT THE SAME.
13% WERE UNSURE.
SO LET'S START THERE.
IS CONTRACTING OUT STATE
SERVICES A GOOD IDEA?
OR A BAD IDEA?
WHO WANTS TO START?
>> I'LL START IT.
I THINK IT DEPENDS ON THE
CONTRACT.
I REPRESENT 140 CONSULTING
ENGINEERS.
A LOT OF OUR WORK IS CONTRACTED
WITH THE STATE, EITHER THROUGH
THE DEPARTMENT OF
TRANSPORTATION, CPRA, FACILITY
PLANNING.
THOSE ORGANIZES AREN'T LARGE
ENOUGH TO DO THE WORK THEY HIRE
OUR PEOPLE TO DO.
>> SO IT DEPENDS SPECIFICALLY ON
THE CONTRACT BUT THERE'S NOT A
GOOD OR A BAD HERE, IT DEPENDS
ON PARTICULAR SERVICE?
DO OTHER PEOPLE AGREE WITH THAT?
>> TREY.
AUTO AIM PROPONENT OF FINDING A
GOOD BALANCE BETWEEN CONTRACTS
AND PRIVATE COMPANIES AND THEN
GOVERNMENT ORGANIZATIONS.
I THINK BOTH CAN BE BENEFICIAL
DEPENDING ON THE SCENARIO.
ONE OF THE ISSUES YOU RUN INTO
IS WHEN PRIVATE COMPANIES CAN'T
REACH THE STANDARDS GOVERNMENT
ORGANIZATIONS CAN.
MY DAD IS A ASSISTANT PUBLICTORY
HERE IN BATON ROUGE.
WHEN HE'S TRYING TO FIND
REHABILITATION FROST TROUBLED
TEENS, WHILE ONE ORGANIZATION
MAY HELP A KID WITH DRUG ABUSE
PROBLEMS, THEY WON'T ALSO HELP
THE KID WITH MENTAL PROBLEMS
FROM DOMESTIC VIOLENCE IN THE
HOUSEHOLD.
THEY HAVE TO FIND LIKE ANOTHER
PRIVATE COMPANY, WHICH JUST
TAKES MORE TIME AND MONEY.
IF WE ARE GOING TO INVEST INTO
THESE PRIVATE ORGANIZATIONS,
THEY NEED TO REACH THE SAME
STANDARDS THAT GOVERNMENT
ORGANIZATIONS WOULD SLIGHT
PEOPLE WITH.
>> YOU THINK GOVERNMENT IS
PROVIDING A HIGHER QUALITY OF
SERVICE, AT LEAST IN SOME CASES
AND ON SOME SERVICES?
>> IT'S ABOUT BALANCE.
>> WILLIAM.
>> YES, I THINK SOME OF THE
AREAS SUCH AS CORRECTIONAL AND
PROBEBATIONAL INSTITUTIONS
SHOULD NOT BE RUN PRIVATELY,
SIMPLY BECAUSE YOU'RE PUTTING
THE PERSON'S RIGHTS IN JEOPARDY.
I MEAN, THEY HAVE BEEN -- THEY
ARE IN THE JUSTICE SYSTEM AND
THEY DESERVE THE STATE AND THEY
DESERVE PEOPLE'S REPRESENTATIVES
RUNNING THAT.
THERE HAVE BEEN SOME TERRIBLE
CASES IN THE SOUTH IN GENERAL,
THANK GOODNESS LOUISIANA HASN'T
YET JUMPED INTO THAT, BUT THERE
HAVE BEEN SOME PEOPLE THROWN IN
JAIL AND FINED HEAVY FINES FOR
TRAFFIC TICKETS AND ENDING UP
YEARS IN JAIL.
IT'S BECOME AN EXTORTION RACKET.
THERE'S CERTAIN AREAS AND THAT'S
ONE THAT GIVES ME A REAL
PROBLEM.
>> DOES ANYBODY BELIEVE PRIVATE
INDUSTRY CAN DO A BETTER JOB IN
PROVIDING SERVICES?
>> I DON'T THINK THEY CAN DO
100%.
EVERYONE IS PRETTY SPLIT.
SOME THINGS ARE BETTER BY
PRIVATE COMPANIES, PRIVATE
COMPANIES AND SOME ARE BETTER
WITH THE GOVERNMENT.
I DON'T THINK YOU'RE GOING TO
FIN 100% IN EITHER CORNER.
>> I THINK SOMETHING WE SHOULD
PROBABLY KEEP IN MIND, HOW IT
AFFECTS STATE EMPLOYEES.
I WAS A STATE EMPLOYEE BEFORE
FOR A COUPLE OF YEARS, I KNOW I
WAS EMPLOYED BY EARL K. LONG
BEFORE THEY KIND OF WENT
DEFUNDAMENT.
FIRST AND FOREMOST, WHEN YOU'RE
TALKING ABOUT THE DIFFERENCE
BETWEEN PRIVATE VERSUS PUBLIC,
KEEP IN MIND HOW IT AFFECTS
THOSE EMPLOYEES, OF COURSE.
>> AND ESPECIALLY FROM YOUR
PERSPECTIVE, THE PUBLIC
EMPLOYEES.
>> OF COURSE, NO DOUBT ABOUT
THAT.
>> JOHN.
>> ONE OF THE THINGS THAT REALLY
HASN'T BEEN ADDRESSED
ADEQUATELY, WHEN YOU'RE TALKING
ABOUT THE PRIVATE VERSUS PUBLIC
DEBATE, IS THE FACT YOU HAVE TO
HAVE SOME KIND OF AN OVERSIGHT.
BECAUSE HAVE YOU AN EXTERNAL
PARTY PERFORMING THE SERVICES
DOESN'T MEAN THEY CAN BE LEFT
ALONE.
THEY HAVE TO HAVE STANDARDS,
EXPECTATIONS AND SO FORTH BUILT
INTO THE CONTRACT.
>> NOW, DO YOU FEEL LIKE THERE
ARE ADEQUATE PROTECTIONS TO MAKE
SURE THERE'S ACCOUNTABILITY IN
THE SYSTEM?
JOHN.
>> I DON'T THINK THERE'S
ADEQUATE -- NEARLY ENOUGH
OVERSIGHT.
THAT'S WHY WE'RE HERE AND
TALKING ABOUT IT, THAT'S WHY
THERE'S A HOUSE BILL ON THE
FLOOR.
WHETHER YOU CAN CONTINUE CAN
PRIVATIZATION OR STICK WITH MORE
STATE JOBS AND CONTRACT FROM
WITHIN, WE NEED OVERSIGHT FOR
BOTH OF THOSE, IT'S VERY
IMPORTANT.
>> TY.
>> I HAVE SOME DOUBT ABOUT THAT,
I THINK THERE'S TOO MUCH
OVERSIGHT.
IF YOU HAVE A GOVERNMENTAL
CONTRACT YOU'RE THINKING ABOUT
ISSUING, IT IS OF COURSE
REVIEWED BY WHATEVER DEPARTMENT
IT MAY BE COMING OUT OF.
IT'S SENT TO CIVIL SERVICE FOR
FURTHER REVIEW, BECAUSE IT MAY
AFFECT THOSE PEOPLE WHO ARE
EMPLOYED IN WHAT I CONSIDER TO
BE AN ALREADY BURGEONING
BUREAUCRACY, AND THE WHOLE
PURPOSE OF PRIVATIZATION THERE
WOULD SEEM TO ME TO BE TO REDUCE
THAT BUREAUCRACY.
IN MANY ACCOUNTS OR MANY
SITUATIONS IT BECOMES
UNACCOUNTABLE.
INSTEAD OF BEING GOVERNED BY
THOSE WE SELECT, WE'RE GOVERN
BESIDE NAMELESS, FACELESS
BUREAUCRACIES THAT HAVE NO
REALLY ACCOUNTABILITY
THEMSELVES, BUT ARE REVIEWING
THE PRIVATE CONTRACTS TO MAKE
SURE THEIR NEST DOESN'T GET
UNFETTERED.
I HAVE SOME ISSUES WITH THAT.
>> YOU'RE WORRIED ABOUT
ACCOUNTABILITY BUT ALSO THE FACT
THAT WE'RE TRYING TO REDUCE
BUREAUCRACY, BUT THE REVIEW
PROCESS ENDS UP WITH MORE
BUREAUCRACY.
>> PRECISELY.
YOU'VE GOT A BALANCE THERE, YOU
BROUGHT IT UP.
CERTAINLY THERE WILL BE POLICY
DECISIONS WHICH CONSTITUTIONALLY
THE JUDICIARY IS PART OF THAT
SYSTEM.
SOME OF THOSE SERVICES, FOR
EXAMPLE DRUG TESTING, THAT COULD
BE PRIVATIZED WITHOUT ANY
PROBLEM AT ALL.
HOWEVER, THE POLICY PART BECOMES
A LITTLE BIT MORE OF A STICKY
WICK KET BECAUSE YOU WANT TO
MAKE SURE THAT YOU HAVE THE
RIGHT PERSONAL, THE RIGHT
TRAINED PERSONNEL IN ORDER TO
KEEP THE PRISON POPULATION.
AS EVERYBODY KNOWS WE ALREADY
HAVE MORE PRISONERS THAN ANY OR
STATE IN THE UNION.
>> MICHAEL IS READY TO JUMP IN.
>> JOHN, WE CERTAINLY NEED --
ONE OF MY QUESTIONS IS, IF WE
HAVE THE PERFORMANCE MEASURES,
WHO IS ESTABLISHING THE
PERFORMANCE MEASURES?
AND PERHAPS MORE IMPORTANTLY,
WHO IS ENFORCING THE PERFORMANCE
MEASURES, ESPECIALLY WHEN WE
JUST SAW ON THE INTRO PIECE WHAT
HAS HAPPENED AT JACKSON AND IN
SOUTHEAST LOUISIANA MENTAL
HOSPITAL.
ARE WE FINDING THEM IN THAT
ASPECT.
AND I AGREE THAT WE DON'T WANT
TO GET INTO AN ASPECT WHERE
WE'VE CREATED SO MUCH BUYER
REVOKE CRACY THAT WE'RE TYRONN
LUE COSTING OURSELVES MONEY.
YOU, AND YOU'RE SHAKING YOUR
HEAD.
DO YOU AGREE?
>> I AGREE ON SOME ASPECTS.
THE ISSUE IS THE WASTE.
I BELIEVE THAT WE SHOULD HAVE
SOME OVERSIGHT, ESPECIALLY BY
OUR STATE GOVERNMENT, BUT LIKE
WHAT TY SAID, WE DON'T WANT TO
CREATE THIS BUREAUCRACY WHERE IT
TAKES SO MUCH TIME AND THE
GOVERNMENT BECOMES TOO LARGE.
BUT AGAIN, THE WHOLE POINT OF
THIS WITH AS TO REDUCE WASTE.
WE'RE SEEING AN INCREASE LIKE HE
MENTIONED IN SOUTHEAST WITH
JACKSON AND THE MENTAL HOSPITAL.
IT'S DEPLORABLE THAT WE'RE
HAVING TO HAVE FOOD BROUGHT IN
FROM McDONALD'S.
>> DO PEOPLE GENERALLY AGREE
THERE'S MORE WASTE WITH THE
GOVERNMENT CONTRACTING?
>> AGAIN, I THINK IT DEPENDS ON
THE CONTRACT.
USUALLY THERE'S 13,000 CONTRACTS
OUT THERE TODAY.
WELL, YOU ONLY SHOWED A HANDFUL
OF THEM THAT ARE PROBLEMATIC.
IF YOU WENT THROUGH 13,000 OF
THEM, HOW MANY ARE REALLY
PROBLEMATIC?
IT PROBABLY ISN'T THAT MANY.
THERE ARE PROBABLY A LOT OF GOOD
CONTRACTS OUT THERE THAT ARE
WORKING AND WORKING THE WAY THEY
SHOULD.
PEOPLE LIKE TO POINT TO THE FEW
BAD APPEARS AND SAY, LOOK, THIS
IS HOW THE WHOLE CYCLE IS.
IT'S A FEW AND GO TAKE CARE OF
THOSE FEW.
>> THAT'S ALL THE TIME WE HAVE
FOR THIS PORTION OF OUR SHOW.
WHEN WE RETURN WE WILL BE JOINED
BY A PANEL THE EXPERTS TO
FURTHER EXPLODE "STATE CONTRACTS
101".
>>> WELCOME BACK TO "LOUISIANA
PUBLIC SQUARE."
TONIGHT WE'RE DISCUSSING "STATE
CONTRACTS 101".
JOINING US NOW IS OUR PANEL OF
EXPERTS.
JOHN KENNEDY IS LOUISIANA STATE
TREASURER, A POSITION HE HAS
HELD SINCE 2011.
AS TREASURER HE OVERSEES THE
STATE'S $10.6 BILLION
ININVESTMENT PORTFOLIOS.
142 CALLS FOR A 10% REDUCTION OF
STATE CONTRACTS WITH THE SAVINGS
DIRECTED TOWARDS THE STATE'S
HIGHER EDUCATION.
>> KEN NAQUIN IS A OVERSEEING
CONTRACTORS REPRESENTING
BUILDING, HIGHWAY, HEAVY USE THE
AND INDUSTRIAL CONSTRUCTION
FIRMS.
LAGC MEMBERS WORK EVERY DAY
UNDER STATE CONTRACTS.
STATE REPRESENTATIVE KENNETH
HAVARD IS A REPUBLICAN WHO
REPRESENTS DISTRICT 62.
HE CURRENTLY SITS ON THE HOUSE
COMMERCE AND HEALTH AND WELFARE
COMMITTEES.
THE PRIV VACATION REVIEW ACT
WOULD OVERSEE CONTRACTS WORTH
MORE THAN $500,000.
THE INSTITUTE'S MISSION IS TO
PROMOTE FREEDOM AND PROSPERITY
IN LOUISIANA.
THERE'S NO FORMAL POSITION ON
THE PRIVATIZATION OF GOVERNMENT
SERVICES IT DOES PROMOTE
POLICIES THAT LIMIT THE SCOPE
AND COST OF GOVERNMENT.
BEFORE WE GO TO OUR AUDIENCE FOR
QUESTIONS, AUTO EACH OF YOU
COULD TELL ME BRIEFLY WHAT YOUR
THOUGHTS ARE ON LOUISIANA STATE
CONTRACTS AND PRIVATIZATION.
>> WE'VE GOT TOO MANY.
WE'VE GOT ABOUT 19,000 ACCORDING
TO THE LEGISLATIVE FISCAL
OFFICE.
WE SPEND OVER $5 BILLION A YEAR.
WE'VE CUT HIGHER EDUCATION TO
THE BONE.
OUR BILL WOULD REDUCE THE
SPENDING BY 10% AND DEDICATE THE
MONTH IN TO HIGHER EDUCATION.
THERE ARE THE CONTRACTS OF ONE
DEPARTMENT.
CONSULTANTING CONTRACTS FOR THE
DEPARTMENT OF EDUCATION.
615 MILLION TAXPAYER DOLLARS AND
THESE AREN'T THE CONTRACTS.
THIS IS A LISTING OF THE
CONTRACTS.
PICK THE FIRST 50 NAMES OF THE
BATON ROUGE PHONE BOOK AND ASK
THIS TOMORROW ELIMINATE 10%.
THE TAXPAYERS WILL NEVER NOTICE
THE DIFFERENCE.
THE UNIVERSITIES WILL BE CUT TO
THE BONE.
WHAT WE'VE DONE TO HELP
CONSULTANTS, WE OUGHT TO BE
EMBARRASSED.
>> MR. NAQUIN, YOU REPRESENT
CONTRACTORS.
IS THAT THE RIGHT PERSPECTIVE?
>> WE TYRONN LUE CANNOT OPERATE
WITHOUT CONTRACTORS, KIRBY.
UNLIKE TREASURER KENNEDY WE'D
LIKE TO SEE MORE CONTRACTS.
THE PEOPLE WHO WORK FOR THE
COASTAL RESTORATION, FACILITY
PLANNING, DOTD, OUR CONTRACTORS,
ENGINEERS THAT WORK FOR THOSE
AGENCIES, THEY HAVE TO WORK ON
THE CONTRACTS.
THEY ARE VERY WELL-DEFINED, THEY
HAVE A TREMENDOUSLY -- ALL THOSE
DEPARTMENTS HAVE A CONTRACT
REVIEW SETTLEMENT.
WE THINK WE'D LIKE TO SEE MORE
CONTRACTS AND MORE WORK.
OUR PROBLEM IS NOT ROAD
CONTRACTS.
DEN'S RIGHT ABOUT THAT.
OUR PROBLEM IS NOT ROAD
CONTRACTS.
>> YOU'VE INTRODUCED LEGISLATION
ALSO TO DEAL WITH CONTRACTS?
>> THE ISSUE IS NOT NECESSARILY
THE STATE CONTRACTS,
ESPECIALLIES THE ROAD CONTRACTS,
CONTRACTS WE WOULD DO EVERY DAY.
MINE DEALS MOSTLY WITH
PRIVATIZATION CONTRACTS AND I
THINK WE NEED MORE OVERSIGHT,
MORE COM HELP VIEW PLANS.
RIGHT NOW WE DO NOT HAVE THAT
AND MOST PEOPLE THAT AREN'T IN
CONSTIT GOVERNMENT PROBABLY
REALIZE THAT WEAVER SPENDING
MILLION, $268 ONE CONTRACT,
ALMOST $1 BILLION OF THE OFFICE
OF GROUP BENEFITS AND THE
LEGISLATURE DID NOT HAVE
OVERSIGHT INTO THAT CONTRACT.
I WANT TO PUT SOME REVIEW
PROCESS IN PLACE.
THAT'S WHAT MY DILL DOES.
>> MR. KANE, FROM THE PELICAN
GROUP PERSPECTIVE, WHAT'S YOUR
--
>> SURE, WE ARE IN FAVOR OF
LIMITING THE STATE AND COST OF
GOVERNMENT.
I TEND TO THINK OF IT AS AN
OPPORTUNITY TO HAVE A HIGHER
LEVEL RATHER THAN A LOWER COST.
IF YOU CAN DO THAT WITH A
PRIVATE COMPANY RATHER THAN
GROWING BESIDE THE SIZE OF
GOVERNMENT, I THINK THAT'S A
GOOD THING.
HAVING SAID THAT, YOU DO NEED
OVERSIGHT SIGHT.
THERE'S NO PRIVATIZATION IS GOOD
OR BAD, YOU HAVE TO HAVE -- I
THINK THERE ARE CERTAINLY AREAS
OF GOVERNMENT WHICH PROBABLY
CAN'T BE PRIVATIZED.
I DON'T THINK THAT REAL NO, REALISTIC
WITH OTHER OUTCOME: THERE NEEDS
TO BE PROPHET OVERSIGHT OR IT'S
A DISASTER.
>> LET'S GO TO OUR AUDIENCE.
TREY, YOU HAD A QUESTION.
>> I DON'T THINK IT'S AN
EITHER/OR LIKE WHAT YOU WERE
SAYING JUST NOW.
BUT DO I FEEL LIKE THERE HAS TO
BE A WAY, IF WE'RE GOING THE
PRIVATE ROUTE, THERE HAS TO BE
SOME THINGS THAT IT WOULD MAKE
MORE SENSE TO GO PRIVATE.
BUT OTHER THINGS MAKE MORE
STONES GO GOVERNMENTAL.
HOW WOULD YOU OVERSEE PRIVATE
ORGANIZATIONS BECAUSE THAT'S
SOMEBODY SAYING IT MOO BUSINESS,
AS LONG AS AIM FOLLOWING THE LAW
ENFORCEMENT HOW WOULD, OVERSEE
IT.
>> I KNOW TREASURER KENNEDY AND
REPRESENTATIVE HAVARD KNOW MOTOR
VEHICLE IT'S ABSOLUTELY DOABLE
AND YOU JUST BUILD IT INTO A
CONTRACT.
WITH PRIVATIZATION IT'S EASIER
TO GET BAD OF A PRIVATE COMPANY,
THAN IT IS A A -- A PART OF
GROFT THAT YOU'VE GROWN AND
HIRED PEOPLE.
IT'S PROBABLY EASIER TO GET RID
OF THE BAD EGGS.
>> YOU'VE GOT MAKE A DISTINCTION
BETWEEN PRIVATIZATION.
PRIVATIZATION IS A CALCULUS, YOU
ASK WHAT ARE THE VITAL SERVICES
AND PRODUCTS THAT GOVERNMENT
SHOULD DELIVER TO TAXPAYERS?
ONCE YOU HAVE THAT LIST, ASK WHO
CAN DO A BETTER AND CHEAPER JOB
BUT EQUALLY EFFICIENT OF
DELIVERING THOSE PRODUCTS OR
SERVICES.
IF IT'S PRIVATE SECTOR, YOU GO
WITH THE PRIVATE SECTOR.
IF IT'S PUBLIC, YOU GO WITH THE
PUBLIC SECTOR.
THAT'S WHOLLY SPRAYS.
THE CONTRACTS I'M TALKING ABOUT,
WE TALKED ABOUT THIS IN THE
ABSTRACT, LET'S GET DOWN IN THE
WEEDS.
CONTRACT 672113.
CONTRACT WILL PROVIDE
PROGRAMMING TO ASSIST STUDENTS
TO LEARN VALUABLE SOCIAL SKILLS
THROUGH ORGANIZED PLAY ON THEIR
RECESS AND LUNCH PERIODS.
NOW, MY SON HAD LUNCH AND RECESS
DOWN IMMEDIATELY IN PRE K.
HE'S ANTI-YEARS OLD NOW, HE'S
STILL GOOD AT IT.
HIS TRIGS IS A SEPTEMBER OTHER
STORY.
INFORMATION AND EDUCATION RAPIDS
PARISH IN THE USE OF SEAT BELTS.
STATE SPONSORSHIP OF CHIMPANZEE
DISCOVERY DAYS INVOLVING BROAD
MEDIA ATTENTION TO OBSERVATION
OF CHIMPANZEES IN A SPACIOUS
FORESTRY HABITAT.
THESE RIGHT CONTRACTS THAT OUR
BILL WOULD ELIMINATE.
IT WOULD GENERATE ABOUT $528
MAINLINE EVERY YEAR AND WE'LL
SPEND THAT MONEY ON HE HAD CASE
INDICATION, ON LSU, SOUTHERN,
DELGADO.
WE HAVE CUT THEM 67%.
YOU DON'T BELIEVE ME, ASK KER BY
WHAT'S HAPPENS OVER THE ALL
RIGHT FIVE YEARS.
PART IS THE FRIVOL QUESTIONS,
ONE IS ARE WE PAYING FOR THINGS
THAT WE SHOULD, AND THE OTHER
ONE IS ARE WE GETTING OUT OF THE
CONTRACTS WHAT WE NEED TO GET.
REPRESENTATIVE HAVARD.
>> WE NEED TO SET UP A
COMPREHENSIVE PLAN UP FRONT
WHAT, WE EXPECT THE CONTRACTOR
TO DO AND HOW WE EXPECT TO GET
THERE AT THE END OF THE YEAR WE
NEED TO REVIEW THOSE CONTRACTS
AND MAKE SURE THAT WE ARE
GETTING WHAT WE PAID FOR.
THE LEGISLATURE IS RESPONSIBLE
FOR THE BUDGET AT THE END OF THE
DAY.
IF THREE GUYS IN THE BACK ROOM
ARE WORKING ON THE CONTRACT, AND
I'M NOT RESPONSIBLE FOR IT --
WELL, I AM RESPONSIBLE IT FOR
BUT I HAVE NO INSIGHT OR INPUT
INTO IT, WHAT GOOD AM I TO EVEN
BE THERE.
THESE PEOPLE HAVE TONS AND TONS
OF LOSTISTS.
I'M THE PEOPLE'S LOBBYIST IN THE
LEGISLATURE, I'M THERE TO MAKE
SURE THEIR MONEY IS SPENT WELL.
WE SHOULD HAVE A SAY OR AT LEAST
A LOOK AT THESE CONTRACTS.
>> MR. NAQUIN, DO YOU FEEL LIKE
THE REVIEW PROCESS IS ADEQUATE?
HOW DO WE KNOW THE CONTRACTS ARE
DOING WHAT THEY ARE SUPPOSED TO
DO?
>> THE THREE AGENCIES THAT WE
WORK FOR, THE CONSULTING
ENGINEERS AND ARCHITECTS AROUND
THE STATE.
THEY HAVE A CLOSE WORK OUT
SESSION AT THE END OF EACH
PROBLEM.
WERE THEIR ANY PLANNED JURORS
ERRORS, ET CETERA, ET CETERA.
THAT GOES INTO THE TEXT
PRESENTATION ON HOW THEY GOT
GRATED AS COMING AFTER THOSE
CONTRACTS.
THIS TESTIFY TO MAKE A
PRESENTATION, THEY HAVE TO NOT
BID TO THE LOWEST BIT BUT THEM
TO MAKE A PROPOSAL TO BE HIRED
AGAIN.
THEY HAVE GREAT CLOSE-OUT
SESSIONS ON THOSE.
THERE'S NO REASON IF THEY CAN DO
IT ON THESE, ANY OTHER --
>> WHAT ABOUT THE 10% ACROSS THE
BOARD IDEA, HOW WOULD THAT
AFFECT YOU?
>> BUSINESSWOMEN LITTLE, IT HAS
NOG DO WITH THIS BILL.
>> BUT THIS BILL DOESN'T AFFECT
THE CAP THAT WILL AS THE.
MY BILL HAS STRICTLY TO DO WITH
PRIVATIZATION CONTRACTS LIKE
EARL K. LONG HOSPITAL, THE
PERFECT EXAMPLE.
WHEN WE STARTED THE CONTRACT IT
WAS $100 MILLION.
THAT WAS TWO YEARS AGO.
THIS YEAR IT'S $169 MILLION.
IS IT SAVING MONEY?
I DON'T THINK SO IF WE LOOK AT
IT IN THOSE TERMS.
THERE ARE OTHER CONTRACTS THAT
WE'RE OUT THERE LOOKING AT CNSI
WAS A PERFECT RACKET THAT WE
HAD, AND WE ENDED UP PULLING
THAT CONTRACT.
>> COULD YOU EXPLAIN THE CNSI
SITUATION VERY BRIEFLY?
>> WE HIRED A CONTRACT TO DO THE
MEDICAID BILL AND IT WAS A FIRM
THAT CAME OUT OF MICHIGAN.
I THINK IT WAS MICHIGAN, AND
ANYWAY, OUR DUE DILIGENCE WASN'T
DONE UP FRONT.
LATER WE FOUND OUT THERE MIGHT
HAVE BEEN SOME IMPROPRIETOR
BETWEEN THE DEPARTMENT OF HEALTH
AND THE HOSPITAL.
SUMMER ACTS SAID THE SAME THING.
WE PROBABLY WOULD HAVE CALLED
SOME OF THIS STUFF UP FRONT.
>> MICHAEL, YOU'VE BEEN WAITING
TO GET IN.
HOW DO I GET ONE OF THOSE
CONTRACTS.
>> WE'VE GOT 19 HOW TO OF THEM.
MOSUL YOU HAVE TO KNOW A
POLITICIAN, I'M HOW THE ARE
WORMED THERE WE'VE GOT HAVE SOME
PERFORMANCE MEASURES AND WHO
TAKES CARE OF THE PENALTIES IF
THEY DON'T MEET UP WITH THE
PERFORMANCE MEASURES.
I'M JUST INTRIGUED OF WHY OLOL
HAS GONE UP.
DIDN'T WE HEALTH WHAT WE'RE
GOING PAY THEM.
>> WE ABSOLUTELY D. OUR MEDICAID
REIMBURSEMENT RATES WERE CUT
FROM THE FEDS AND THAT COST US
OUR SHARE.
MANY YOU HAVE HAVE TALKED ABOUT
BEING BUSINESS GUYS OR LADIES.
WE WOULD NOT HAVE SIGN A REPORT
THAT HAD A 50 BLANK PAGES BEFORE
WE SIGNED THEM AND IT'S COMING
BACK TO HAUNT US NOW.
THEY HAVE SEE THE WE DON'T AGREE
WITH THE WAY YOU SET THIS
LEASING THING UP OR THE NONCOSM.
SO THAT'S ALREADY A $307 MILLION
HOLE IN THE BUDGET BECAUSE WE
DIDN'T DO OUR WORK IN THE FLU
SHOT M. WE'RE KIND OF IN THE
BRAVE NEW WORLD SO TO SPEAK WITH
REGARDS TO PRIVATIZATION, GROUP
BENEFITS, THE CHARITY HOSPITAL
AND SO ON AND SO FORTH.
THE PART OF THE QUESTION I
HAVEN'T HEAR, AFTER SEVERAL
YEARS OF THESE CROCKETTS REPEL
-- IF WE'RE DETERMINED THEY ARE
NOT TO PROVIDE COST SAVING AND
BENEFIT TOTS STATE, WOULD IT BE
CONTEMPLATED THAT THE SERVICES
MIGHT BE INSOURCED AGAIN?
>> WELL, IT'S A HUGE CONTRACT,
AND LAST TAKE THE PRIVATIZATION
OF OUR HOSPITAL.
BUT ONCE YOU TURN OVER ALL OF
YOUR HEALTH CARE TO THESE SELECT
PRIVATE HOSPITALS, YOU CAN'T
JUST TAKE THEM BACK ON A DIME.
THAT'S PART OF THE PROBLEM.
I SUPPORTED THE PRIVATIZATION
BECAUSE WE WERE TOLD THAT IT
WOULD SAVE MONEY AND NOT ACT
ADVICE THE QUALITY OF CARE.
THE ORIGINAL ESTIMATE WAS $600
MILLION ON THE PRIVATIZATION OF
OUR CONTRACTS.
THE PROBLEM IS THAT 600 MILLION
GAME 1.2 MLB.
IT'SING GOING UP AGAIN NEXT
YEAR, I SUPPORT THE
PRIVATIZATION AND I HAVE HAVE
YET TO SEE THE SAVINGS.
WE JUST HEARD THEY ARE GOING TO
WITHHOLD OUR MEDICAID MONEY,
WHICH IS STILL INDEED LOVE -- IT
CAN WORK.
IT'S SUPPOSED TO SAVE MONEY AND
I HAVE BEEN SEEN TOO, WHEN WE
THROE AURAL K.
THERE WAS NOWHERE FOR THEM TO
BRING THE INMATES AND THAT'S
GOING TO PRIVATE.
ARCH.
ALSO YOU HAVE -- YOU NEED TO
LOOK AT THE PRIVATE HOSPITALS
THAT SURROUND EARL K. LONG,
YOU'VE GOT LANE AND ZACHARY, WHO
DIDN'T -- THEY DIDN'T HAVE THE
LUXURY OF CUTTING A DEAL TO GET
THE FULL REIMBURSEMENT FROM THE
STATE.
EVERY TIME AN INDIGENT PATIENT
WALKS INTO THAT HOSPITAL, NOT
THE HOSPITAL BUT INTO THE
EMERGENCY ROOM, THEY GET ZERO
REIMBURSEMENT IT FOR.
THE SAME THING GO THE OH WUR
SHOW THE CROWNING AREAS.
ARE WE GETTING THE SERVICES?
I CAN TELL YOU THIS, IF YOU TRY
TO GO THERE NOW, MANY, MANY
TIMES, WE JUST SAW THE OTHER DAY
ON THE NEWS WHERE THE EMERGENCY
ROOM RATES, WAITING TIMES HAVE
GONE UP.
>> NOW, WHAT HAPPENS IF WE CUT
THOSE CONTRACTS BY 10%?
ARE THOSE PART OF WHAT YOU
INCLUDED?
>> THEY ARE NOT INCLUDED.
THE CONTRACTS -- I WANTED TO
SAY, KIRBY, IT'S FOR DISTINGUISH
BETWEEN PRIVATIZATION AND
FRUITLESS CONTRACTS.
HERE'S ANOTHER ONE.
CONTRACT NO. 725404.
EACHING VALUES TO FOURTH AND
FIFTH GRADERS.
WE NEED TO BE TEACHING MATH AND
READING.
HERE'S ANOTHER ONE, HERE'S A
$547,790 CONTRACT, NO. 660531.
TEACH THE PARTS PENTS THE
SCHOOLS NEEDED.
I THINK WE ALL KNOW WE'RE BETTER
OFF WITH A JOB THAN WITHOUT.
BUT IF I'M THE BALLROOM TEACHER
AND YOU CUT MY CONTRACT BY 10%,
DO WE HAVE A PROBLEM THEM?
>> I WOULD CUT IT COMPLETELY.
BUT I'VE ALREADY GOT THE
CONTRACT.
>> NO, WE HAVE A VISION IN EVERY
CONSULTING CONTRACT WHICH SAYS
THE STATE CAN GET OUT OF IT BY
SENDING THEM A LETTER AND GIVING
THEM 30 DAYS' NOTICE.
>> WHY DON'T WE?
>> BECAUSE A LOT OF NIECE
CONTRACTORS ARE POLITICALLY
CONNECTED.
>> LET ME GET A QUESTION FROM
HALEY.
SHE'S BEEN WAITING TO GET IN.
>> YOU MENTIONED ALL THESE
FRIVOL CONTRACTS.
WHY HAS NOBODY OPENS TO THEM
BEFORE THEY WERE TINE.
THAT'S A GREAT QUESTION, I DON'T
KNOW THE ANSWER TO IT.
THERE'S A GROUP CALLED OFFICE OF
CRACKTUAL REVIEW, IT'S IN THE
PRIVATIZATION AND THEY ARE
SUPPOSED TO REVIEW ALL OF THESE
CONTRACTS.
THEY DON'T REVIEW THEM FOR
POLICY, THEY REVIEW THEM FOR
FORM.
>> THE LOUISIANA GOVERNOR IS A
VERY POWERFUL MAN, IT WAS SET UP
THAT WAY IN THE CONSTITUTION
CONVENTION YEARS AGO.
YOU HAVE VERY FEW PEOPLE THAT
ARE ABSOLUTELY LOOKING AT THE
CONTRACTS, ESPECIALLY THE
PRIVATIZATION CONTRACTS.
OUR REVIEW FORE OUR LADY OF THE
LAKE, THEY ARE NOT ELECTED.
THEY ARE APPOINTED, THEY DON'T
HAVE TO ANSWER TO ANYBODY EXCEPT
WHO POINTED THEM.
I HAVE TO ANSWER TO MY SITTIANS.
IF I'M RESPONSIBLE I WANT TO SEE
THE CONTRACT AND AT LEAST HAVE
SOME INPUT.
>> I THINK MOST OF YOU AGREES
THE BALANCE IS WHAT'S NEEDED.
THE CONTRACTS AROUND BAD OR
ABOUT THE.
I THINK THE PROBABLIES IN
PRESIDENT BOARD, HOW DO SOME OF
THESE CONTRACTS GET PASSED?
IT DOESN'T MAKE SENSE.
>> IT'S NOT THE LEGISLATION'S
FACILITY, THEY SAY LOOK, WHY ARE
YOU HIRING SOMEBODY, PAYING THEM
60,000 A YEAR TO TELL SOMEBODY
TO WEAR THEIR SEAT BELTS WHEN
IT'S THE LAW.
THERE ARE THOUSANDS OF THESE
THINGS.
THE MONEY, I WOULD ELIMINATE
EVERY ONE AND DEDICATE THE MONEY
TO EDUCATION.
>> IS IT POSSIBLE TO START HE
HAD CASES: THE GOVERNOR WILL DO
IT WITH AN EXECUTIVE ORDER.
WE HAVE A BILL, IT'S NOT AN
ACROSS THE BOARD CUT, DIRECTING
EVERY AGENCY OF STATE GOVERNMENT
TO REDUCE SPENDING ON
CONSULTANTS BY A VERY MOD
DECEMBER THEY CAN KEEP SPENDING
90 PERTAIN BUT WE'LL GOT THEY
HAVE CONTRACTS.
IT DOESN'T TOUCH THE ROAD
CONTRACTS OR MEDICAID PROVIDERS.
WE WILL DEAD CASE THAT MONEY TO
OUR UNIVERSITIES.
>> SO IF IT'S POLITICAL, THOUGH,
HOW DOES IT HAPPEN?
>> WELL, LOOK.
WE'VE GOT ENOUGH MONEY, KISH
WE'VE GOT ENOUGH MONEY TO BE NO.
1 IN THE SOUTH IN EDUCATION, OUR
COASTAL RESTORATION, OUR ROAD
CONSTRUCTION BUT WE DON'T HAVE
ENOUGH TO BE NUMBER ONE IN THE
SHOUT FOR THOSE THINGS OR
POLITICAL PATRONAGE.
>> THE PELICAN INSTITUTE --
>> WHO CAN ARGUE IN FAVOR OF
WASTEFUL CONTRACTS?
I'M NOT -- AND AGAIN, I HAVEN'T
LOOKED AT THE CONTRACTS IN
QUESTION.
I GENERAL IMPINGE.
>> OPPOSED AT SOME OF THESE
PROGRAMS.
YOU KNOW, I THINK SOME OF THAT'S
JUST INHERENT WITH A GOVERNMENT
THAT SPENDS THAT MUCH MONEY AND
IS INVOLVED IN SO MUCH DIFFERENT
THINGS.
ONE OF THE REASONS I'M SORT OF
PHILOSOPHICALLY INSPIRED TO
SUPPORT THE CONCEPT WHILE OF
COURSE IT HAS TO BE DONE RIGHT.
I DO THINK IT'S EASIER TO BUILD
ACCOUNTABILITY INTO IT AND GET
RID OF THE PEOPLE WHO AROUND
PERFORMING.
OF.
A GENTLEMAN EARLIER MENTIONED
THE ISSUE OF PRIVATE PRISONS.
AND IN LOSE, WE HAVE THE
HYDE'SERS RATE IN THE COUNTRY.
WE HAVE A SYSTEM WHERE ABOUT
HALF OF THE STATE PRISONS ARE
INCARCERATED IN LOCAL PRISONS
AROUND THE STATE.
AND THEN WE PAY THOSE SHERIFFS
PER DIEM MONEY FROM THE STATE
FOR THE MUST BE OF PRISONERS
THAT WE'VE HOLD.
NOW, I'M NOT ATTACKING THE
SHERIFFS HERE, THEY WERE DOING
WHAT THEY WERE ASKED TO DO.
IF THEY WEREN'T, WE WOULD HAVE
TO BUILD MORE PRISON, WHICH IS
ALSO VERY SPECIFY.
WE HAVE GRATED AN INCENTIVE THAT
MOST OF US WOULD AGREE IS
PROBLEMATIC.
A BIG PART OF THEIR BUDGET IS
DEPENDING ON HAVING A CERTAIN
NUMB OF PEOPLE INCRATER RATING.
PEOPLE GENERALLY THINK THESE
SORT OF PROBLEMS ARE CREATED BY
THE PRIVATE SECTOR.
MAYBE THEY CAN HELP GET US OUT
OF THAT SOMEHOW, IF YOU HAD
COMPANIES THAT WERE INCENTIVIZED
TO EDUCATE AND GIVE JOB TRAINING
TO PEOPLE IN JAIL, WHO WE KNOW
ARE GOING TO BE GETTING OUT AND
PREPARING THEM FOR LIFE ON THE
OUTSIDE, AND THEY ARE
INCENTIVIZED TO BRING DOWN
RECIDIVISM RATES OR MAYBE WE
COULD JUST FINED WITH A IT TO DO
WITH YOU THAT MEAL.
>> WHAT SORT OF ITEMS WE HAVE TO
HAVE THERE.
THAT'S REALLY WHAT MATTERS.
>> AND THERE IS A WAY TO TAKE
THE POLITICS OUT OF THE REVIEW
PROCESS?
CAN WE GOAT A NONPOLITICAL
OBJECTIVE FAIR REVIEW PROCESS?
>> MY OPINION, I DON'T THINK
YOU'LL EVER TAKE EMPLOYMENT
COMPLETELY OUT OF ANYTHING
BECAUSE WE'RE HUMAN BEINGS IT'S
A JUST THE WAY WE ARE.
I NEVER WE'VE GOT A LOT OF GOOD
PEOPLE WITH THE CAPITOL.
>> WHAT MY BILL WOULD DO IS AT
LEAST GET THE LEGISLATIVE YOU
HAD A SISTER IN ON THE FRONT
END, SERVICE THOSE TAPING OR IT
SAVING US MONEY SEND IT TO THE
HOUSE OVERSIGHT NIGHTMARE WHO
HAS A DECISION OVER THAT, AND
THEN LET US MAKE A DECISION FROM
THERE.
THAT'S WHAT MY BILL WOULD DO,
HAVING TROUBLE GETTING FOX WITH
HEIFER EFFACE UP.
I KNOW WE'RE TALKING ROADS
VERSUS FRIVOLOUS AND THERE ARE
SOME DISTINCTIONS WE'RE MAKING
HERE.
DO YOU FEEL LIKE THE REVIEW IS
TOO LIMITED?
TOO THOROUGH?
>> FROM MY STANDPOINT, IT'S
WITHIN THE DEPARTMENTS.
IT DOESN'T GO TO THE OFFICE OF
CONTRACTS.
WITHIN THE INDIVIDUAL APARTMENTS
I THINK THEY DO A VERY GOOD JOB
OF CLOSE OUTAND PERFORMANCE
MEASURES, HE DOES.
I THINK WHAT TREASURER KENNEDY
SAID, THERE REALLY IS NO REVIEW
PROCESS TODAY.
THE OFFICE OF REVIEW IS SIX
PEOPLE, ALL THEY DO IS AT THIS
TIME AND LOOK AT THE REALITY OF
THIS YOU KNOW.
THE AUDIENCE AND SOME ELECTED
OFFICIALS AND PEOPLE PEOPLE IN
LAST ARE LOOKING FOR.
>> IF IT'S AN OUT OF STATE OH
COMPANY THAT GETS THE CONTRACTS,
WHAT ARE THE TAX IMPLICATIONS
VOUS AN ANYONE STATE COMPANY.
>> AUSTIN, YOU'VE BEEN WAITING.
>> I HAVE A QUICK QUESTION,
YEAH.
IT REALLY SURPRISES ME LIKE
GETTING SUPPORT FROM THE
ADMINISTRATION.
THERE WAS A BIG PUSH FOR FISCAL
REFORM IN THE STATE.
I SAW YOUR BILL BARELY MADE IT
THROUGH A SENATE COMMITTEE.
MY WHOLE THING IS RETURNS RUN ON
BEING FISCALLY CHERTIVE.
LAST YEAR I SENT THE BILL TO TWO
COMMITTEES AND GOT OUT OF BOTH
COMMITTEES WITHOUT OBJECTION ON
THE HOUSE SIDE.
93 VOTES ON A NO VOTE.
IF I HAD ABOUT A THREE-MINUTE
HEARING, I HAD THAT HEARING AND
THEY KILLED ME.
THIS IS THE SAME BILL I'M
BRINGING THIS YEAR.
I DON'T CARE WHO THE GOVERNOR
IS, I'M GOING TO BRING IT EVERY
YEAR AS LONG AS I MEAN UNTIL I
GET IT BACK.
>> I WAS JUST CURIOUS TO SEE IF
YOU ALL AGREED OR DISAGREES.
WITH THE ADDITION OF THE
CONTRACTS, THE WAY THE CONTRACTS
ARE AT SISTERED, THE WAY THEY
ARE THEN REVIEW.
THEY ARE ULTIMATELY GOING TO
HAVE THE RESPONSIBILITY FOR
THIS, RIGHT?
LET ME PUT IT THIS WAY.
DO YOU ALL AGREE THAT PERHAPS
THE BEAUROCRACY ITSELF THAT WE
HAVE CREATE THE IS OPERATING OUT
THERE AS ITS OWN PLANET AND
UNACCOUNTABLE TO ANYONE FOR THE
DECISIONS IT MAKES ABOUT RECRESS
AND CHIMP PINCH.
>> I DON'T THINK -- THE ROAD
CONTRACTS ARE DIFFERENT, THERE'S
A WHOLE SEPARATE APPARATUS.
I DON'T THINK THE CONTRACTS ARE
BEING REVIEWED FOR POLICY.
WE'VE CUT HIGHER EDUCATION FROM
OUR GENERAL FUND BY 67%.
SINCE 2008.
>> YEAH.
>> NOW, IN LIGHT OF THAT, WHY
WOULD ANYBODY APPROVE CONTRACT
NO. 686276.
IT'S A ONE-DAY SEMINAR,
LEADERSHIP DISNEY STYLE FROM THE
LEADERSHIP ACADEMY AT DCRT.
WHY WOULD ANYBODY PROVE -- DHH
IS SHORT OF MONEY.
THEY JUST SIGNED A CONTRACT FOR
$20,000 TO SPONSOR TWO BOXING
TOURNAMENTS.
>> DO WE TURN IT OVER TO THE
DEMOCRATS WHO SIMPLY OPERATE IN
THEIR OWN ATMOSPHERE?
>> THESE DECISIONS COME FROM
HIGHER UP.
>> REPRESENTATIVE HAVARD, LIKE
HE WAS SAYING THESE ARE
RIDICULOUS.
BUT ALSO HOW DOES A $100 MILLION
CONTRACT BECOME A $100 MILLION
CONTRACT?
I THINK IT WAS WITH BENEFITS,
GROUP INSURANCE.
WITHOUT YOUR EYES SEEING IT
INWHO CHECKS THE CHECKER IS
GUESS IS MY QUESTION.
IT WOULD DATAUP, WE WEREN'T SET
UP FOR THAT.
WITH HE HAVE NO REVIEW PROCESS
AND THAT'S WHAT THIS BILL WOULD
DO.
>> THE PRIVATIZATION HAS BEEN
THE LAST COUPLE OF
ADMINISTRATIONS?
>> RIGHT.
>> OKAY.
>> JUST SO I'M CLEAR, SO YOUR
CONCERN AS I HEAR IT IS MOSTLY
VIEW OF ON THE FRONT END, MAKING
SURE WE'RE NOT SPENDING MONEY ON
THINGS WE DON'T NEED, AS OPPOSED
TOES TO A REVIEW ON THE BACK END
THAT MAYBE THERE ISN'T AS BIG OF
A PROBLEM?
>> WELL, I'LL JUST SAY THIS.
OVER THE LAST FEW YEARS SINCE
I'VE BEEN THERE, I'VE HEARD THE
GOLD STANDARD OF ETHICS AND TRAN
PARAPHERNALIACY AND ALL OF THESE
THINGS.
IT'S TIME THAT WE MATCH OUR
ACTIONS TO OUR RHETORIC.
THAT'S ALL I'M ASKING.
THAT'S WHAT WE NEED TO DO.
ESPECIALLY ON A PRIVATIZATION
CONTRACT, I'M NOT AS FAMILIAR
WITH BRIDGE CONTRACTS AND
MAINTENANCE CONTRACTS AND
ENGINEERING.
YOU'RE TALKING A $50,000
CONTRACT VOUS A $1 BILLION
CONTRACT.
>> IT'S A QUESTION OF
PRIORITIES, KIRBY.
THE DEPARTMENT OF CHILDREN AND
FAMILY SERVICES SPENT $100
MILLION ESTABLISHING A WEBSITE.
THE CONTRACTOR BELOIT, FROM OUT
OF STATE, I THINK THEY ARE OUT
OF PENNSYLVANIA, THEY ARE ALL
OVER THE WORLD, DIDN'T FINISH
THE JOB.
THEY GOT A NEW CONTRACT.
YOU KNOW WHAT THEIR PERSONALITY
WAS FOR NOT FINISHING THE JOB?
NOTHING.
THAT WOULD NEVER HAPPEN IN THE
PRIVATE SECTOR.
I DON'T THINK WE SHOULD HAVE
SPEND $100 MILLION ON A WEBSITE.
I THINK THAT SHOULD HAVE SPENT
IN OUR UNIVERSITIES.
IF THE CONTRACT DOESN'T PERFORM
AND CREWS UP THE WEBSITE,
SHOULDN'T THERE BE A PENALTY?
>> ARE THERE INADEQUATE
PENALTIES,.
>> BEFORE WE ISSUED THIS FRONT
END VERSUS BACK SEND.
LET ME GIVE YOU AN EXAMPLE OF
THAT.
I'M ON THE BOARD OF AN
ORGANIZATION THAT RUNS CHARTER
SCHOOLS.
I THINK AN EXAMPLE OF THIS THING
BEING DONE PROPERLY,
ORGANIZATIONS THAT ARE GIVEN
CHARTERS TO RUN SCHOOLS ARE
REVIEWED BY THE STATE.
AFTER A FEW PROVIDED, THEY LOSE
THE CHARTER.
WE'RE SEEING SCHOOL IN NEW
ORLEANS, FAILING FOR PERFORM IN
MANAGING SCHOOLS AND THEY LOSE
THE CHARTER.
TO ME, THAT'S HOW IF YOU'RE
GOING TO -- I MEAN, THIS IS A
FORM OF PRIVATE DECISION.
OUT OF CROFT TROL, I THINK
THAT'S A GOOD EXAMPLE OF HOW
THAT CAN WORK PROPERLY.
>> I'M GLAD HE BROUGHT THAT UP
ABOUT THE CHARTER SCHOOLS.
A LOT OF PEOPLE DON'T KNOW THIS
OR REALIZE IT.
A LOT OF THEM ARE FOR-PROFIT
CHARTERS SCHOOLS.
THEY ARE BEING PARADED THROUGH
THE VEIL OF A NONPROFIT
ORGANIZATION.
IN ORDER TO PRAYS IS A CHARTER
SCHOOL IN LOUISIANA YOU HAVE TO
BE A NO.
THE STATE GIVES ME MFP DOLLARS,
WHICH ARE CAR ACCIDENT KNOT
BETTER THAN.
I THEN TURN AROUND AND GIVE TO
IT A FOR-PROFIT COMPANY WHO
MAKES MONEY, YOU KNOW, AND IS
MAKING ENOUGH FOR A PROFIT.
NOW, THERE ARE SOME CHECKS AND
BALANCES IN THERE TO MAKE SURE
THEY ARE DOING PROPERLY AND
OPERATING PROPERLY.
IF THEY ARE TAKING TAXPAYER
DOLLARS AND BUYING A PENCIL
THAT, PROPERTY THROUGH STATE
WITH THE TAKE THE OR THE
INJURIED YET, THE ORGANIZATION.
--
>> I'D A RAISE A QUESTION BASED
ON THAT.
IF SOMEBODY IS CREATING A
NONPROFIT FOR SORT OF GOVERNOR
FOR.
I'VE JUST RAISED THIS QUESTION I
THINK WE OUGHT TO CONSIDER.
LET'S SAY A FOR-PROFIT COMPANY
DOES A BETTER JOB OF EDUCATING
OUR CHILDREN.
ASK ANYBODY REALLY HAVE A
PROBLEM IF THEY TURN A PROFIT IN
DOING THAT?
>> I DON'T.
>> I'D HIRE SOME MORE OF THEM IF
THEY CAN WORKED.
>> JOHN HAS A QUESTION.
>> THIS IS FOR ONE OF YOUR PANEL
MEMBERS, I GUESS.
WE KIND OF KEEP TRAVERSING BACK
TOWARD EDUCATION, MY QUESTION
WILL BE HOW DO YOU AS I THE MOVE
WOULD AFFECT PRIVATIZATION IN
SOME WAYS?
>> LET ME TALK ELEMENTARY AND
SECONDARY FIRST.
I'LL SUPPORT ANYTHING THAT
IMPROVES.
>> ANYTHING.
IN TERMS OF HIGHER EDUCATION,
OUTHERN LSU, UNIVERSITIES, THEYS
HAVE THE TOOLS, THEY JUST DON'T
HAVE THE FUNDING.
SO IT'S A SEPARATE PROBLEM.
>> WILLIAM, YOU HAD A QUESTION.
>> THE BIG ISSUE HERE IS
CONFLICT OF INTEREST.
I HAVE NO PROBLEM WITH THE
SCHOOL DOING BETTER A PRIVATE
SCHOOL, ALTHOUGH WHO'S CHECKING?
WHO'S ACCOUNTING FOR IT?
DOES THE PUBLIC GET TO SEE WHAT
THEY ARE TEACHING?
IF A PRIVATE COL HAS OIL
INTERESTS OR SOMETHING, THEY
MIGHT NOT WANT TO TEACH
ENVIRONMENTAL SCIENCE.
CONFLICT OF INTEREST IS MY
BILLER STUMBLING BLOCK.
BUT IS IT TOO ABOUT TURKCAN
VALLEY IN THE HEALTH CARE?
WHAT KIND OF LEGAL RESOURCE IS
THE STATE GOING TO HAVE IF
THERE'S A PROBLEM DOWN THE ROAD?
ARE THERE PROVISIONS TO AVOID
LENGTHY LITIGATION THAT A BIG
HEALTH CARE COMPANY COULD AMASS
A HUGE WAR CHEST TO TIE YOU WANT
STATE?
HOLD US OVER A BARREL.
>> CNSI IS A GOOD EXAMPLE.
>> WE'RE IN THE MIDDLE OF A
LAWSUIT NOW WITH CNSI.
WE COULD HAVE DONE THAT BY DUE
DILIGENCE ON THE FRONT END.
>> DANIEL, YOU'VE BEEN WAITING
TO GET IN.
>> I HAVE.
REPRESENTATIVE, 19,000
CONTRACTS, HOW DOES 135, 40 OF
YOU ALL TRY TO GET YOUR HANDS
AROUND THAT?
YOU'D HAVE TO DO WHAT WASHINGTON
DOES AND BACK FULL-TIME
LEGISLATOR.
>> NO, YOU WOULDN'T.
MY BILL IS EVERYTHING OVER 5
MILLION DOLLARS.
AS FAR AS THE CONTRACT, I'M NOT
GOING WANT TO DEFINITELY INTO
EVERY SINGLE ENGINEER AND
CONTRACT ON THE ROAD.
THAT'S AN ISSUE I THINK
REPRESENTATIVE RICHARD AND JOHN
KENNEDY IS TALKING ABOUT.
WE'RE NOT TALKING ABOUT A BUNCH
OF CONTRACTS, BUT WE ARE TALKING
A HUNDRED HERE, ONE BILLION
DOLLARS, WE SHOULD LOOK AT THOSE
CONTRACTS.
>> HERE WHAT'S YOU DO, DAN.
IT'S REALLY SIMPLE.
HOUSE PREPARATION SENATE
FINANCE, WE MEET ONCE A MONTH.
BEFORE THEY HAVE A MEETING THEY
GET A LIST OF ALL OF THE
CONTRACTS SIGNED THE PREVIOUS
MONTH.
IF NOBODY HAS ANY QUESTIONS THE
CONTRACT'S APPROVED.
IF SOMEBODY HAS A QUESTION, YOU
HOLD A HEARING ON IT.
THE PEOPLE BEHIND THE CHIMPANZEE
DISCOVERY DAYS CONTRACT, THEY
ARE NOT GOING TO TRY TO GET THAT
CONTRACT ANY MORE.
THEY KNOW THE COMMITTEE WILL
CALL -- THEY ARE NOT GOING TO
EVEN TRY IT ANYMORE.
A LOT OF THESE FRIVOLOUS
CONTRACT WILL JUST GO AWAY.
UNLIGHT IS A PRETTY GOOD
ANTISEPTIC.
>> BUT THE NEW CONTRACT DOESN'T
BECOME FINAL UNTIL IT'S APPROVED
BY THE JOIN LEGISLATIVE
COMMITTEE ON THE BUDGET.
THERE'S NO LAW FOR THAT RIGHT
NOW.
>> DOES SOMEBODY HAVE A BILLING
TO DO THAT?
>> YOU WILL SEE LEGISLATION TO
DO THAT.
BEFORE WE DO THAT I'D LIKE TO
REDUCE THE SPENDING BY 10%.
IT'S NOT ACROSS THE BOARD.
WE TELL EVERY AGENCY HEAD REDO
THE YOUR -- WE'RE ASKING THEM TO
USE THEIR MANAGEMENT SKILLS.
THEN WE'RE GOING TAKE THAT MONEY
AND SPEND IT IN OUR UNIVERSITY
COMMUNITIES.
>> WELL, WE'VE RUN OUT OF TIME
FOR OUR QUESTION AND ANSWER
SEGMENT.
WE'D LIKE TO THANKS OR PANEL
IT'S, MR. KENNEDY, MR. NAQUIN,
REPRESENTATIVE HAVARD.
WHEN WE COME BACK WE'LL HAVE A
FEW CLOSING COMMENTS.
>> WELL A LIVELY CONVERSATION
AND I THINK IF THE VIEWERS WANT
TO KNOW MORE INFORMATION THEY
CAN GO TO THE DIVISION OF
ADMINISTRATION WEBSITE.
AND ALSO ONE OF OUR GUESTS HAS A
WEBSITE SUNSHINE.ORG, RIGHT?
>> YEAH, AND ALWAYS A GREAT
CONVERSATION AND I ALWAYS LEARN
A LOT FROM OUR GUESTS AND OUR
PANELISTS.
>> SECRETARY KENNEDY SAYS IT'LL
TAKE YOU THREE YEARS TO SEE ALL
OF THE CONTRACTS.
IT'S A LOT OF READING.
THAT'S ALL THE TIME WE HAVE FOR
THIS EDITION OF "LOUISIANA
PUBLIC SQUARE."
WE ENCOURAGE TO YOU VISIT OUR
WEBSITE AT LPB.ORG/PUBLICSQUARE.
WHILE THERE TAKE THIS MONTH'S
SURVEY, VIEWER EXTENDED COMMENTS
AND TONIGHT'S SHOW.
DORIAN WRITES TO US, MINIMUM
WAGE INCREMENTS SHOULD BE
INCREASED ANNUALLY UNTIL IT
REACHES NATIONAL LEVEL.
CHARLENE WRITES, THIS IS VERY
SIMPLE, RAISE MINIMUM WAGE SO
PEOPLE CAN PAY BILLS AND HAVE
ENOUGH LEFT TO DO THINGS WITH
THEIR FAMILIES.
>> THESE JOBS WERE CREATE THE A
PART-TIME JOBS, THEY WERE NEVER
INTENDED AS FULL-TIME FAMILY
SUPPORT JOBS.
>> THE MONTH OF MAY MEANS THE
ENTRY THE THOUSANDS OF NEW
COLLEGE GRADUATES INTO
LOUISIANA'S JOB MARKET.
THIS YEAR THESE JOB SEEKERS WILL
BE JOINED BY HUNDREDS OF
RETURNING VETERANS AS THE
MILITARY DOWNSIZES TROOPS
OVERSEAS.
WHAT DOES LOUISIANA'S EMPLOYMENT
MARKET LOOK LIKE FOR THESE JOB
HUNTERS?
JOIN US NEXT MONTH AND
"LOUISIANA PUBLIC SQUARE" LOOKS
FOR ANSWERS ON JOB MARKET 2014.
GOOD NIGHT.
NOTES
**
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